STEP 1 – You can choose from almost any car or van currently on the market and decide the best term for the lease and mileage estimates. If you want some help deciding, we can advise you on what types of vehicle will suit your needs.
STEP 2 – Once you have chosen your vehicle and we have qualified your requirements, we will pass you over to sales, so you can get a personalised quote based on your selected terms. (This will lead to taking a few more details so a credit line can be set up)
STEP 3 – There are no hidden extras so, providing you return the vehicle within the terms of your contract, you will know exactly how much the vehicle is going to cost you from day one.
STEP 4 – Before ordering the vehicle we will tell you how long it will take to arrive from the manufacturer. If there is a gap between the delivery date and your requirements, we can talk to you about short-term rental vehicles to plug the gap, keeping you mobile at all times.Once the lease has commenced if you need help at any stage our vehicle leasing specialists can be contacted directly.
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The reasons why leasing is No1 option
For a fixed monthly payment you can lease brand new cars and vans without having to find the initial capital to purchase them outright. The contract can be tailored to suit your particular business or personal needs, but is typically between 3 and 4 years. There is also the option to include maintenance within the lease.
Because you never own the vehicle, at the end of the contract we will collect it and dispose of it. This means that you never take the risk on the final value or have the hassle of selling it. All you need to decide is which vehicle you want, the length of the contract and the expected mileage – we look after the rest.
PCH – Personal Contract Hire
PCP – Personal Contract Purchase
HP – Hire Purchase
BCH-Business Contract Hire
Will I own the car at the end? You have an option to buy.
How much are the monthly payments? More affordable per month than HP. Often more expensive per month than leasing.
Are there mileage allowances: Yes.
First things first. PCPs are not a lease. PCPs were originally designed to be used by people who put down relatively small deposits, with the monthly payments kept lower than they would be under a simple HP agreement through a proportion of the outstanding balance being set aside until the end of the agreement.
The sum that is set aside is determined by the finance company and is based on what the estimated value of the vehicle is at the end of the agreement. This takes into account the amount of mileage you state you are going to do over that period, which you have to agree before a quote is compiled.
When you reach the end of the agreement, the offset sum, referred to as the 'balloon payment' or Guaranteed Minimum Future Value (GMFV), becomes due. You are then provided with a few options – you can pay off the amount in one go, you can re-finance the amount in some way, or you can trade the vehicle in for something else.
The third option is obviously the one the dealer hopes you will go for, and if the vehicle is worth more than the GMFV, the extra is yours to use as a deposit on your next vehicle, or for anything else for that matter.
If the vehicle isn't worth the GMFV, you simply hand it back to the finance company and the shortfall is their problem. It is understood that around four out of five people hand their car back and opt for a newer car, instead of buying the two, three or four-year old car. If that's the case, these people might find leasing more suitable, and more affordable.
Will I own the car at the end? No. You hand it back at the end of the term.
How much are the monthly payments? Often the cheapest monthly payment.
Are there mileage allowances: Yes.
Personal Contract Hire (PCH), commonly known as leasing, couldn't be any simpler if it tried to be.
You make an initial rental payment (usually 3, 6, or 9 payments in advance), decide on your lease length and annual mileage, and then make a consistent monthly payment for the duration of the agreement.
At the end of the term the vehicle is handed back to the leasing company, and as long as you've done less than the agreed mileage and the car is in typical condition for its age and mileage, there's nothing more to pay.
Is car leasing cost effective? Yes. Other than the deposit and the monthly payments, all you will have paid for is normal running costs such as fuel, insurance and maintenance. You can even remove the relative uncertainty of routine maintenance by including it in your monthly lease payments if you prefer. Vehicle Excise Duty is included in your lease payments as well, so not only do you not have to shell out for it, you don't even have to worry about the hassle of renewing it each year.
Will I own the car at the end? Yes.
How much are the monthly payments? The most expensive monthly payment.
Are there mileage allowances: No.
The popularity of HP has been in decline over the last few years, as consumers look to keep monthly costs lower, want a new car more often, and are less interested in ownership. In a HP agreement, you pay a deposit, which is usually sizeable (10-20%) and pay off the outstanding balance over a number of years. It's for those who KNOW they want to own the vehicle. Beware though, interest rates can be quite high – even though the current base rate is at a historic low – and there's nothing protecting you from depreciation.
You are not tied to mileage limits and once the finance agreement reaches an end, the vehicle is yours to keep.
Is it cheaper to lease or buy?
Leasing is all about depreciation. That's how much money a car loses in value over the years. If you're looking for a premium vehicle, it can often be a lot cheaper to lease than buy because vehicles that hold their value and depreciate less, will cost less to lease per month, for example VW tend to have high re sale values. More budget vehicles can depreciate more, so although the monthly payment might still be less on a lease than on a PCP or HP for a Vauxhall Corsa or Kia , you may find leasing allows you to afford a more prestigious badge with more equipment and technology.
It's important to do your research. If you're not convinced yet and you're in the market for a new vehicle, carry out a little leasing vs buying exercise for yourself. Choose the car you're interested in, get a PCP quote for 36 months and then get a leasing quote for the same vehicle, term and mileage. Then calculate the total amount of money you will actually pay out over the term.
Whether you're an SME, a sole trader, a partnership or a limited company, business leasing is a long-term vehicle rental solution ideal for businesses of all sizes.
For a fixed monthly rental and low initial outlay, you can drive away in a brand-new vehicle with minimal capital expenditure. At the end of the contract, you simply return the vehicle without worrying about depreciation or disposal.
What's more, business leasing offers significant tax advantages and removes the financial risk and administrative burden of owning your vehicle or fleet.
Commercial Vehicles attract 100% tax relief, resulting in a major reduction in what "the lease" is really costing you.
As whatever your tax rate on income or profits, the percentage of this will be deducted against the lease payment.
Leasing with an ownership feel
Let us explain further on this option when contacting us.
We are excited to connect with you and assist in any way we can. Feel free to reach out to us using the provided contact information. We are looking forward to hearing from you!
UKLA Exeter
Consultants For New Vehicle Leasing
9am – 8pm